|
Business |
Porgera eyes 1m ounce-level by ’12
But PJV may miss
target of 635,000oz this year: Report
By BRIAN GOMEZ in Sydney
THE Porgera mine may not attain anticipated output of 635,000
ounces of gold this year, but could approach a near record million
ounce level once again by 2012, according to an authoritative
mineral industry consultancy.
An expert report for DRDGold on to the sale of a 20% stake in the
Porgera mine by its subsidiary, Emperor Mines, said projected
output this year may be optimistic depending on remediation work
on the collapsed west wall, due for completion this month.
Last year’s production of 542,000 ounces was “the lowest since the
mine opened”.
The report by Behre Dolbear Australia Pty Ltd said the Porgera
Joint Venture required major capital expenditures for open pit
mining over the next two years for major equipment replacement.
Significant spending was also needed over the next three years for
underground development and capital replacement, along with major
spending on autoclaves and mills in the processing plant.
BDA said that with work on the west wall nearing completion, costs
for the 2008-10 period would return to the lower levels of Stage 5
mining but would increase again as waste haulage increased with
implementation of the Stage 6 cutback.
Based on the latest PJV review of the remaining operating life at
Porgera, BDA estimated that direct cash costs per ounce of
production would rise from US$401 (K1,065) this year (assuming
output of 635,000 ounces) to US$403/oz next year.
As production reaches an estimated peak of 930,000 ounces in 2012
these costs will fall to US$278 (K738.58) an ounce and remain at
between US$244 (K648.26) and US$368 (K977.63) in the succeeding
three years.
However, this forecast is conservative due to higher than
anticipated gold recovery, higher potential gold content in the
open pit and the likelihood of increased underground production.
The report said open pit mining would continue until 2016 based on
the Stage 6 cutback “and significantly longer should a future
decision be made to proceed with Stage 7”.
Reconciliation data suggested that PJV may be underestimating
in-pit mineable reserves by at least 10% to 15% contained gold,
translating to an additional million ounces of contained gold.
Current reserves are estimated at 9.4 million ounces with
additional indicated and inferred resource of 3.6 million ounces.
Underground reserves are estimated at 8.1 million tonnes averaging
8.7 g/t gold with production peaking at around 1.3 million tonnes
a year between2013 and 2015.
However, if sufficient reserves are defined “there is good
potential to increase underground production up to two million
tonnes per annum within three years”.
In recent years gold recovery levels have exceeded budget
projections by 2% to 4%. For example, gold recovery last year was
88.4% compared with a budget of 85.6%.
The report also noted that allocation of funds to PJV’s community
affairs programme amounted to US$38 million (K100.96 million) over
the next seven years, with mine closure costs estimated at US$54
million (K143.46 million).
 
|
